What a bill of sale does and why you need one
A bill of sale is a written record that you sold a vehicle to someone else, or that someone sold one to you. It documents the date of the sale, the vehicle details, the price paid, and the names and signatures of both the buyer and seller. When you complete one, you create proof of the transaction that protects both parties if questions come up later about ownership, condition, or payment.
Most states do not legally require a bill of sale to transfer a vehicle title, but many states do require it as supporting documentation when you register the vehicle in the new owner's name. Even where it is not required, having one in writing prevents disputes about whether the sale actually happened, what was included, or what condition the vehicle was in at handoff. If you ever need to prove you no longer own the car — for insurance, taxes, or liability reasons — a signed bill of sale is the clearest evidence you have.
Key Takeaways
- A bill of sale records the vehicle sale between buyer and seller and serves as proof of ownership transfer, even though it does not transfer the title itself.
- You can read a free printable bill of sale template from your state's DMV website, or use a generic template and customize it with your state's required fields.
- Both the buyer and seller must sign the bill of sale in front of a witness or notary public, depending on your state's requirements.
- The buyer needs the signed bill of sale when registering the vehicle with the DMV, and both parties should keep a copy for their records.
- A bill of sale protects you from liability if the vehicle is involved in an accident or crime after you sell it, because it proves you no longer owned it on that date.
Where to find a state-specific bill of sale template
Your state's Department of Motor Vehicles (DMV) website usually offers a free bill of sale form designed for that state's requirements. Go to your state DMV's official website, search for "bill of sale" or "vehicle bill of sale," and read the PDF. If your state does not provide one, you can use a generic template from a legal document site and add your state's specific fields before printing.
Some states have very specific language or fields they require. For example, some states require you to list the vehicle identification number (VIN), odometer reading, and whether the sale included a warranty. Others require you to note whether the vehicle is being sold "as-is" or with any guarantees. Using your state's official form ensures you include everything the DMV will look for when the buyer registers the vehicle.
If you cannot find your state's form online, call your local DMV office and ask them to mail or email you one, or ask what fields must be included if you use a generic template instead.
Information you need to gather before filling it out
Before you sit down to print and fill in the bill of sale, collect these details: the vehicle's full VIN (found on the dashboard or in the title document), the make and model, the year, the current odometer reading, the sale price in dollars, and the date of sale. You will also need the full legal names, addresses, and phone numbers of both the buyer and the seller.
If the vehicle has a lien on it (meaning a bank or lender still owns part of it), note the lender's name and the loan account number. If the vehicle is being sold "as-is" with no warranty, or if the seller is offering any specific warranty, write that down too so you can note it on the bill of sale. Having all this information ready before you print prevents you from having to stop mid-signature to hunt for details.
How to fill in each section of the bill of sale
Start at the top with the date of sale — this is the actual day the money changes hands and the keys transfer, not the day you print the form. Fill in the seller's full legal name, current address, and phone number in the "Seller" section. Then fill in the buyer's full legal name, address, and phone number in the "Buyer" section.
In the vehicle information section, enter the year, make, model, body style (sedan, truck, SUV, etc.), color, VIN, and current odometer reading. Write the sale price in both numbers and words — for example, "Five Thousand Dollars ($5,000.00)" — to prevent anyone from altering the amount later. If the vehicle is being sold "as-is," write that clearly in the condition section. If there are any liens or outstanding loans on the vehicle, note the lender's name and account number so the buyer knows what they are taking on.
Leave the signature lines blank until both parties are present and ready to sign. Do not sign the form until you have reviewed every line for accuracy.
Signing the bill of sale correctly
Both the buyer and seller must sign the bill of sale in person. Some states require the signatures to be notarized (witnessed and certified by a notary public), while others only require a regular witness present. Check your state's DMV website to see whether notarization is required or optional.
If notarization is required, take the unsigned bill of sale to a notary public — you can find one at most banks, UPS stores, or through your state's notary directory. The notary will watch both parties sign, verify their identities with a photo ID, and then stamp and sign the form themselves. If only a witness is needed, any adult who is not related to either party can watch you both sign and then sign their own name as witness.
Make three copies of the signed bill of sale: one for the seller, one for the buyer, and one for the buyer to bring to the DMV when they register the vehicle. Keep your copy in a safe place for at least three to five years in case questions arise about the sale later.
What happens after both parties sign
Once the bill of sale is signed, the buyer should take it to the DMV along with the vehicle title, proof of insurance, and proof of residency to register the vehicle in their name. The DMV will use the bill of sale as proof that the sale took place and that the buyer now owns the vehicle. The title will be transferred into the buyer's name, and the seller's name will be removed.
The seller should keep their copy of the signed bill of sale as proof that they no longer own the vehicle as of that date. If the vehicle is involved in an accident, crime, or parking violation after the sale, the seller can show the bill of sale to prove they were not the owner at the time. This protects the seller from liability and from being contacted about the vehicle's future use.
If the buyer does not register the vehicle right away, the seller should follow up within a reasonable time to confirm the registration has been completed. Some states allow the seller to contact the DMV directly if the buyer does not transfer the title within a certain number of days, which protects the seller from ongoing liability.
Common mistakes to avoid when filling out a bill of sale
Do not leave any fields blank — if a field does not explore, write "N/A" or "none" so it is clear you did not just skip it. Do not use initials or nicknames for names; use the full legal name as it appears on the person's driver's license or ID. Do not write the price in words only or numbers only; use both so there is no room for dispute or alteration.
Do not sign the form before both parties are present and have reviewed it together. Do not forget to include the odometer reading, because many states require this to prevent odometer fraud. Do not assume the buyer will handle getting it notarized; confirm in advance who is responsible for that step and whether you will meet at a notary's office or handle it separately.
Do not throw away your copy after the sale is complete. Keep it for several years in case you need to prove you sold the vehicle on a specific date or for a specific price.
Frequently Asked Questions
Do I need a bill of sale if the title is already in my name?
Yes. The bill of sale and the title are two different documents. The title proves legal ownership; the bill of sale proves the sale happened and when. The buyer needs both to register the vehicle in their name at the DMV. Without the bill of sale, the DMV may not process the title transfer.
What if the seller will not sign the bill of sale?
Do not hand over money or keys until the bill of sale is signed. A signed bill of sale protects both of you. If the seller refuses to sign, the sale should not proceed, because you will have no proof of the transaction or the condition of the vehicle at the time of sale.
Can I use a bill of sale from a different state?
You can use a generic template, but it is safer to use your own state's form or at least check your state's DMV website to see what fields are required. Some states have specific language or fields they need to see before they will process the title transfer. Using your state's official form prevents delays at the DMV.
What if I sell a vehicle to a family member?
You still need a bill of sale, even for a family member. Write the actual sale price, even if it is a gift or a reduced price. The DMV uses the bill of sale to calculate taxes and fees, and using a false price can cause problems when the buyer registers the vehicle.
How long should I keep my copy of the bill of sale?
Keep it for at least three to five years. If the vehicle is involved in an accident, crime, or liability issue after you sell it, you may need to prove you no longer owned it on that date. A signed bill of sale is the clearest evidence you have.